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TMI BlogMeasures to check tax evasion.X X X X Extracts X X X X X X X X Extracts X X X X ..... investigation in the remaining cases so as to leave no doubt in the minds of taxpayers that they cannot get away with anything they declare in their returns. Intensive scrutiny is thus an essential step in the implementation of the total policy package which reposes increasing faith in the taxpayers and seeks to ensure at the same time that this faith is not abused. 2. Scrutiny assessments should be framed keeping two broad objectives in view. Firstly , there should be no error in the assessments so that audit objections and the need for rectifications do not arise. secondly each assessing officer should be able to process about a half dozen cases from the prosecution angle. No hard and fast rule can be laid down for selecting these cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts in the context of the practices followed in the specific trade/industry may be kept in view: v) Whether addition has been made in the earlier years and if so what happened to it in appeals, vi) Whether the accounts are audited he must invariably go through the notes of the Auditor to see whether any comments have been made on the financial results of the organisation. The report of cost auditors, if any, may also be seen. 5. It is not possible to spell out all the areas where concealment could be detected. Tax dodgers are continuously developing newer and finer methods of concealing their income and the accounts are frequently looked up so as to look perfect and flawless. A good investigating officer has so remove this veil of per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lips may be sent to other assessing officers wherever required. 7. If any fraud or tax evasion has been detected, the original documents should be kept in the personal custody. The statements of the concerned parties should be recorded u/s.131. Since the Income-tax authorities are not price officers, the Supreme Court has held that the statements recorded by them are admissible in evidence so long as they are not under coercion. Additional evidence should be collected from the Bank accounts and from other sources. For proving the signatures of the parties opinion of the Handwriting Expert may be taken. Efforts should be made to collect independent evidence on the points in dispute. Such information should then be put to the assessee and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d which may help in strengthening the case; v) Make an inventory of all the information that is available and the additional information required to make the case fool-proof; vi) The Commissioners of Income-tax are being directed to keep a guard file of the circulars/instructions/letters/important court judgements etc. regarding prosecutions, see if any help can be obtained from this guard file. 9. After completing the above requirements the case may be sent to the D.D.I/A.D.I(Prosecution) for further processing. The opinion of the standing/prosecution counsel may be taken. If the counsel is of the opinion that a successful prosecution complaint can be filed in the facts and circumstances of the case, the case may be made ready for ob ..... X X X X Extracts X X X X X X X X Extracts X X X X
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